Sobha Limited — Others, 04-03-2025: Action(s) taken or orders passed

Sobha Limited's subsidiary, Sobha City, has received an order from the Kerala State Goods and Services Tax Department concerning alleged violations for the 2020-2021 period. The order cites discrepancies in turnover recognition due to pre-GST real estate income and ineligible input tax credit. The total tax liability amounts to ₹4.43 crore, with additional interests and penalties leading to a total of approximately ₹6.27 crore. Sobha City plans to appeal against this order, asserting its legal position. While this may pose some financial scrutiny, there appears to be no immediate operational impact, suggesting a potential risk for investors but also an opportunity if the appeal is successful.